Oil Prices

The Pound to South African Rand exchange rate has retreated from almost two-year highs in recent trade but a heightened risk of further increases in the South African Reserve Bank (SARB) cash rate could mean that GBP/ZAR now struggles to resume its earlier uptrend in the weeks ahead. 

The Organization for Oil Exporting Countries (OPEC) and allies such as Russia agreed this week to cut production of oil by an amount equivalent to two percent of global supply in a cartel decision that means more inflation and comes as further grim news for an already-dark UK economic outlook.

The big question for oil is whether the current bounce in prices represents a reversal back into a more bullish longer-term phase after a long-term low, or whether it is just a kind of ‘dead cat’ bounce.